How much Life Insurance Seniors need?

Don’t Buy Too Much

There are some family situations when it’s a good idea to hold onto your policy. If you had a child late in life or have a relative with special needs who will be permanently dependent on you for income, it often makes sense to keep paying the premiums on your life insurance policy in retirement. Also, if your spouse would lose part or all of the benefits of your pension or Social Security income when you pass away, life insurance  seniors can help to bridge that gap.

What seniors are good candidates for life insurance?

Life insurance can help seniors prepare for the future. While you may not have dependent children, a mortgage or other major debt anymore, it can help your spouse or partner with your final expenses and everyday living expenses if something happens to you. The cash value of a whole or universal policy could also help add to your retirement income.

Even if there will be no substantial financial loss or outstanding liabilities experienced upon death, some seniors may still want to leave a death benefit to their beneficiaries.  Life insurance can also be a good way to leave some money to a beloved charity.  Besides, as a society we’re living longer.  Insurance companies in recent years have adjusted for this need; many insurance companies will now issue coverage up to age 85.  A senior running their business may have a higher net worth and may wish to offset the tax liabilities associated with their business using life insurance.  Here are other situations when life insurance for seniors may make sense:

  • Couples or individuals who remain in their peak earning years, with no intention to retire.
  • Couples who will experience a catastrophic income loss if a spouse dies.
  • Couples or individuals with large estates.

Yet another reason for life insurance  seniors during retirement is the availability of long-term care benefits in certain policies. This is one reason why many retirees obtain new coverage.

Perhaps one’s budget cannot afford new coverage later in life. But at the very least one should not cancel existing cash-value coverage. And this is a reason not to rely on term insurance once you reach middle age. After the initial term period, such insurance becomes very expensive or else just ceases to renew when most people need it the most, that is, when they are most likely to die.

How much Life Insurance Seniors need?

Don’t Buy Too Much

Your life insurance needs change over time.  Typically, as people age, they need less insurance.  That’s because they usually have fewer financial obligations.  The kids are hopefully out of the nest.  The house might be paid off or close to it.  And hopefully your retirement investments have grown.   If any of these describe you, you probably need less insurance today than you did a few years back.

If you would like to compare quotes online please visit our website at www.MintcoFinancial.com

Call us at 813-964-7100